Correlation Between Delta Electronics and OSOTSPA PCL
Can any of the company-specific risk be diversified away by investing in both Delta Electronics and OSOTSPA PCL at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Delta Electronics and OSOTSPA PCL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delta Electronics Public and OSOTSPA PCL NVDR, you can compare the effects of market volatilities on Delta Electronics and OSOTSPA PCL and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Delta Electronics with a short position of OSOTSPA PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delta Electronics and OSOTSPA PCL.
Diversification Opportunities for Delta Electronics and OSOTSPA PCL
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Delta and OSOTSPA is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Delta Electronics Public and OSOTSPA PCL NVDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSOTSPA PCL NVDR and Delta Electronics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Delta Electronics Public are associated (or correlated) with OSOTSPA PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OSOTSPA PCL NVDR has no effect on the direction of Delta Electronics i.e., Delta Electronics and OSOTSPA PCL go up and down completely randomly.
Pair Corralation between Delta Electronics and OSOTSPA PCL
Assuming the 90 days trading horizon Delta Electronics Public is expected to generate 0.83 times more return on investment than OSOTSPA PCL. However, Delta Electronics Public is 1.2 times less risky than OSOTSPA PCL. It trades about 0.2 of its potential returns per unit of risk. OSOTSPA PCL NVDR is currently generating about -0.2 per unit of risk. If you would invest 12,700 in Delta Electronics Public on August 29, 2024 and sell it today you would earn a total of 2,450 from holding Delta Electronics Public or generate 19.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delta Electronics Public vs. OSOTSPA PCL NVDR
Performance |
| Timeline |
| Delta Electronics Public |
| OSOTSPA PCL NVDR |
Delta Electronics and OSOTSPA PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delta Electronics and OSOTSPA PCL
The main advantage of trading using opposite Delta Electronics and OSOTSPA PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delta Electronics position performs unexpectedly, OSOTSPA PCL can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in OSOTSPA PCL will offset losses from the drop in OSOTSPA PCL's long position.| Delta Electronics vs. Airports of Thailand | Delta Electronics vs. Hana Microelectronics Public | Delta Electronics vs. Advanced Info Service | Delta Electronics vs. Kasikornbank Public |
| OSOTSPA PCL vs. Delta Electronics Public | OSOTSPA PCL vs. Delta Electronics Public | OSOTSPA PCL vs. Airports of Thailand | OSOTSPA PCL vs. Airports of Thailand |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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